State makes first steps to set up Kazakh-Romanian energy fund

Romania’s Energy Ministry has launched a public tender to acquire consultancy, legal assistance, and representation services for the Romanian state in setting up the Kazakh-Romanian fund. In 2014, Romania’s Government approved a memorandum by which it agreed to sell a 26.7% stake in the Romanian oil company Rompetrol Rafinare to KMG International, part of the Kazakh group KazMunayGas, for USD 200 million, and to keep the remaining 18%. At the same time, KMG promised to set up a EUR 1 billion investment fund that would finance energy projects in Romania, in which the Romanian state would also hold a minority stake. None of these measures has been implemented so far. The state now seems to be making the first steps in setting up the fund. The initiative could fail, however, after the prosecutors decided in May to freeze the assets of KMG International (the former Rompetrol Group) and local companies Oilfield Exploration Business Solutions (the former Rompetrol SA) and Rompetrol Rafinare. Prosecutors recently reopened the case on the privatization of the Petromidia refinery, now part of KMG International. editor@romania-insider.com